COUNTRY GUIDE

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Ukraine

A short guide to building a dedicated offshore team in Ukraine

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At a glance

Capital
Capital:

Kyiv

Official language
Official language:

Ukrainian

Population
Population:

31.2 million

Timezone
Timezone:

GMT+3

Developers
Developers:

240,000+

Currency
Currency:

Ukrainian Hryvnia (UAH)

Industry revenue
Industry revenue:

$7B+

Investment
Investments in IT sector

$1B+ (2022)

global ALLSTARSIT
Capital:

Kyiv

Language
Official language:

Ukrainian

Population
Population:

31.2 million

Timezone
Timezone:

GMT+3

Developers
Developers:

240,000+

Currency
Currency:

Ukrainian Hryvnia (UAH)

Industry revenue
Industry revenue:

$7B+

Industry size
Investments in IT sector

$1B+ (2022)

Why build a team in Ukraine

Overview

In Eastern Europe, Ukraine is a key emerging player in the global IT sector. With a deep-rooted tradition in math and engineering, it churns out 30,000 IT grads yearly, propelling its tech rise.

Kyiv, the capital, is Ukraine's tech hub, teeming with innovation, events, and R&D hubs. It's home to experts in AI, blockchain, and game dev.

Valued at $5 billion, Ukraine's IT has grown steadily, backed by rising tech firms. Ranking among the top 20 IT exporters, it showcases tech expertise.

With 200,000+ tech professionals and strong English skills, it's one of Europe's tech giants. Its strategic location, cost advantage, and dedication to innovation make it prime for businesses seeking software prowess.

Top tech hubs

Top tech hubs infographic

Employment Conditions Overview

ALLSTARSIT takes care of everything for you – we have a 360° approach with a full recruitment cycle

Payroll Cycle

In Ukraine, the payroll frequency is strictly regulated. Employees are mandated to be paid bi-weekly, with two payments each month, known as the advance payment and final payment. The payroll cycle occurs between the 15th and 20th and then between the 31st and the 7th of the subsequent month. Additionally, payments should be made no more than 7 days after the conclusion of the relevant pay period, ensuring that the gap between two paydays does not exceed 16 days.

Employer Taxes

In Ukraine, employers serve as withholding agents, deducting income tax from employee wages. They are responsible for routinely reporting these withheld amounts to local authorities and also bear the responsibility of making social security payments on behalf of their employees. The standard tax rate for employment income is 18%, and there's an added 1.5% military tax imposed on all earnings.

Overtime Pay

Overtime work beyond the standard weekly hours is subject to regulations specified in employment contracts or collective agreements. Employees may be asked to work overtime or on holidays, but there's a limit of 4 hours over two consecutive days and a maximum of 120 hours annually.

Any overtime that exceeds 40 hours weekly is compensated at a rate of 200% of the employee's regular hourly wage. If overtime occurs on a rest day, an alternative rest day may be offered instead of payment.

It's prohibited for pregnant employees, those with children under 3 years, employees below 18, and those attending school or college to work overtime. For women with children aged 3 to 14 and people with disabilities, employers must obtain consent before assigning overtime.

In specific situations, like accidents causing production disruptions or to prevent production standstills, overtime might be obligatory.

Paid Leave

After six months of continuous work, employees have the right to at least 24 days of paid annual leave. This entitlement can be higher for minors and those in challenging or hazardous roles. Any unused leave days can be carried forward for future use.

Sick Leave

Employees have the right to four months of paid sick leave. While the employer covers the payment for the initial five days, the Social Insurance Fund compensates for the remaining duration.

Public and Provincial Holidays

There are 12 public holidays in Ukraine. Public holidays falling on weekends are moved to another day instead.

Public holidays

Notice Period

The required notice period varies based on who begins the termination process:

  • If initiated by the employer, a 2-month notice is needed.
  • If the employee starts the termination, a 14-day written notice is required.
  • A termination by mutual consent doesn't necessitate any notice period.

13th Month Bonus

While Ukraine doesn't mandate a 13th-month salary, many employers choose to offer it. This additional payment is seen as a gratuity, with employers often giving it or other performance-related bonuses.

Grow your team in Ukraine with ALLSTARSIT

Launching a distinct business operation in Ukraine with the aim of team formation can be an intensive task, often accompanied by substantial legal expenditures.

Concurrently, mastering Ukrainian labor laws and aligning with employee expectations represent intricate and formidable challenges. These issues are magnified by the imperative to secure accurate and contemporary employment data specific to Ukraine. Furthermore, the task of administrating contracts and overseeing invoices through emails and spreadsheets is prone to becoming chaotic and mistake-ridden.

In this context, ensuring compliance is paramount, with a critical need to conform to Ukrainian regulations, especially in matters pertaining to taxes and legalities.

ALLSTARSIT streamlines this entire process by delivering a holistic solution for the discovery and recruitment of employees in Ukraine, overseeing HR and payroll operations, and facilitating automated compliance. We transform the process into a straightforward and smooth experience, devoid of complexities.

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What’s possible with ALLSTARSIT?

Staff Augmentation

Choose the right expert professionals required for your specific project, saving time and wasted effort.

This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.

Dedicated Teams

Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.

Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.

EOR / Contractor Management

Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.

We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.

Staffing & Recruiting

Tap into a wide talent pool of top-tier engineers from our database. We will find the right fit for your business and help you reduce your hiring timeline.

Headhunting

Signing bonuses

Vacancy promotion

Free replacement

Preliminary interviews

HR interviews

HR Operations

Attract, hire, and retain top talent, building a motivated workforce that drives your business forward.

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Non-employee-employer liability

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Managing tech equipment

Retention and risk analysis

Performance reviews

Compensation revision & expense returns

1:1 meetings (180-degree)

Monthly reports

Performance reviews & periodic surveys

Ongoing client and expert support

Our solutions

Hire Employees / Contractors Solution Icon
Hire Employees / Contractors
Offer Corporate Benefits Solution Icon
Offer Corporate Benefits
Onboard & Retain Global Teams Solution Icon
Onboard & Retain Global Teams
Secure Office Space Solution Icon
Secure Office Space
Run Payroll Solution Icon
Run Payroll
Provide Health Insurance Solution Icon
Provide Health Insurance
Implement L&D Program Solution Icon
Implement L&D Program
Provide Health Insurance Solution Icon
Provide Health Insurance
Hire Employees / Contractors Solution Icon

Hire Employees / Contractors

Expand your business globally and hire employees or contractors quickly and efficiently by partnering with ALLSTARSIT, who can act as your EOR/CM and handle the administrative and legal aspects of their employment while you control their workload.

Offer Corporate Benefits Solution Icon

Offer Corporate Benefits

Improve your employees' well-being and job satisfaction by offering them a range of corporate benefits through ALLSTARSIT, including wellness consultant sessions, music lessons, workations, gym compensation, and employee recognition programs.

Onboard & Retain Global Teams Solution Icon

Onboard & Retain Global Teams

Keep track of your team's progress and satisfaction with ALLSTARSIT's monthly reports and periodic surveys, allowing you to identify any issues and make necessary adjustments to retain top talent.

Secure Office Space Solution Icon

Secure Office Space

Enhance your employees' working experience by offering them the possibility of working from an office or securing a seat in a premium co-working space shared area through ALLSTARSIT.

Run Payroll Solution Icon

Run Payroll

Simplify your HR operations and ensure your employees receive timely and accurate paychecks with ALLSTARSIT's comprehensive payroll solution.

Provide Health Insurance Solution Icon

Provide Health Insurance

Increase your employees' satisfaction and productivity by providing them with the peace of mind that comes with having access to a reliable and comprehensive health insurance package made possible by ALLSTARSIT.

Implement L&D Program Solution Icon

Implement L&D Program

Invest in your employees' professional development by implementing a comprehensive L&D program that includes access to online education platforms, language classes, and technical meetups, courtesy of ALLSTARSIT.

Customer Service Support Solution Icon

Customer Service Support

Build a Customer Care or a Customer Support team to ensure that your business excels in providing exceptional assistance to your customers.

Whether you need a team of professionals that can handle relationship building and product knowledge or a group of Tier 1/2/3 engineers that can help with troubleshooting and other technical issues, ALLSTARSIT can help you find, hire and manage them.

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Ukraine

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Trusted by teams and partners

ALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - NetafimALLSTARSIT Client's logo - NetAppALLSTARSIT Client's logo - OracleALLSTARSIT Client's logo - SapALLSTARSIT Client's logo - Johnson&Johnson ALLSTARSIT Client's logo - IntelALLSTARSIT Client's logo - ImpervaALLSTARSIT Client's logo - Cato NetworksALLSTARSIT Client's logo - TaboolaALLSTARSIT Client's logo - YotpoALLSTARSIT Client's logo - Netafim

ALLSTARSIT office in Ukraine

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